Match Group Inc
Match Group Inc
IBD Stock Analysis
- stock_analysis_item”>Shares were extended above a buy zone but have pulled back
- stock_analysis_item”>Stock sits around both its 10-week and 21-day moving averages
- stock_analysis_item”>Match now sitting near possible buy points of 158.50 and 159.63
Industry Group Ranking
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Match Group (MTCH) is the IBD Stock of the Day as the Tinder mobile app owner nears an entry point. Match stock should be a big reopening beneficiary as coronavirus vaccinations gain traction globally and the company rolls out new products, analysts say.
Covid-19 disrupted the dating environment with bars and restaurants closed during lockdowns. Even so, Match stock gained 83% in 2020. Amid the coronavirus pandemic, Tinder adroitly launched video chat services for stay-at-home Tinder subscribers.
MTCH stock popped after the largest provider of online dating products reported better-than-expected second and third quarter earnings. Match stock consolidated after its second-quarter earnings report, forging an entry point of 123.10.
With its third-quarter, earnings-driven rally, Match stock became extended above a buy zone. Shares hit an all-time high of 159.53 on Dec. 17.
After recently pulling back a bit to its 10-week and 21-day lines, MTCH stock has clawed back near possible buy points at 158.50 and 159.63. Shares climbed 3.1% to 158.29 in afternoon trades Wednesday.
Match Stock Institutional Ownership Strong
In addition, Match’s Accumulation/Distribution Rating has improved to A, according to IBD Stock Checkup.
The rating analyzes price and volume changes in a stock over the past 13 weeks of trading. The rating, on an A+ to E scale, measures institutional buying and selling in a stock. A+ signifies heavy institutional buying; E means heavy selling. Think of the C grade as neutral.
MTCH Stock: New Products Coming in 2021
In the September quarter, Match earnings fell 13% to 45 cents a share. Revenue climbed 18% to $640 million.
Jefferies analyst Brent Thill is upbeat on Match stock revenue growth in 2021.
“For 2021, we believe new products catalysts (Tinder Platinum, live video, Swipe Night) and higher willingness to date in-person will likely drive an acceleration in revenue growth,” Thill said in a recent note to clients. “The street’s expectation for 19% revenue growth could even be conservative given the vaccine tailwind.”
The company said it had an average of 6.6 million paid Tinder dating app subscribers as of Sept. 30 vs. 6.16 million in the June quarter. In addition, MTCH stock owns other brands such as Hinge, OkCupid, PlentyofFish and Meetic.
Rival Bumble Plans IPO
Match, Epic Games, and Spotify Technology (SPOT) have banded together to form an advocacy group called the Coalition for App Fairness. In addition, the group is seeking reform of the Apple (AAPL) App Store’s revenue-sharing policies.
Further, Match rival Bumble has filed confidentially for an initial public offering in February, according to a Bloomberg report. Further, the Bumble app was started in 2014 by Whitney Wolfe Herd, co-founder of the dating app Tinder.
Also, former Match stock parent IAC (IAC) has announced plans to spin off video streaming website Vimeo as an independent company in the second quarter of 2021.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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